US domestic scrap prices settle up in the East coast

On strong domestic demand, tight supply on some scrap grades, and strong export demand, US East coast scrap prices in August settled up by as much as $31/mt compared to July. The export market strengthened through the last four weeks by $31/mt directly on shredded scrap, for example, from $304/mt CFR Turkey in early July to $335/mt CFR Turkey in early August.

According to sources, HMS I scrap increased by $20/mt from the bottom of the previous range while some deals reached an increase of $31/mt from the top of the previous range. P&S scrap increased $10/mt from the bottom of the previous range while the top of the previous range also increased by $31/mt. Due to tight supply issues, a source noted that “better deal prices could be achieved on higher volume and easier transportation arrangements as some areas have encountered rail and truck challenges” for HMS I and P&S. Shredded scrap, on the other hand, encountered a direct increase of $31/mt on trades.

Given the demand for prime grades and tight supply, busheling increased from $10/mt to $31/mt in August deals. The difference in the price increase on specific deals, according to sources, was dependent on quality premiums within the grade category. Compared to previous months, the differentiation of quality standards within the grade became more pronounced in the August cycle as certain mill buyers made very specific high-quality requirements and dealers saw an opportunity to gain premium pricing on guaranteed quality groupings.

*In mt terms, the top number denotes change from the bottom of the previous range and bottom number denotes change from the top of the previous change.